He does tend to be pessimistic, but the facts are the facts.
NYT: The Third Depression
We are now, I fear, in the early stages of a third depression.
And this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting — governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.
2 comments:
The people in that meeting all have wonderful jobs and lives. They are all so far removed from the reality of the World's masses that trying to convince them anything is wrong with what they are doing is a waste of time. They worry about inflation as many of the World's economies are rapidly spiraling into an even deeper and more profound Depression. Why? Because they don't give a shit.
I like the way Krugman liens the return to austerity and the notion that a certain percent of the people can just fall off the charts to the old orthodoxy. Its the old Christian work ethic notion. The idea is that there is a better place for you after death than the miserable suffering you have to live with now. Its very dominant in our society. If you are rich and have a big microphone like a Limbaugh, then you can spout it off all day long. And you are absolutely correct, these people don't know what its like to live among the disenfranchised.
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